Colombo prepares to re-open for business

Disinfection work was seen carried out in Colombo Fort area yesterday as Colombo prepares to re-open for business albeit partly under the health sector authorities’ strict guidelines.

CSE to resume trading today; foreigners look to sell

The Colombo Stock Exchange (CSE) is scheduled to resume trading today as the market braces for heavy foreign selling despite anticipated weak buying interest amidst the impact of COVID-19, further exacerbated by its longest ever shutdown spanning for seven weeks along with the island-wide curfew to slow the spread of the pandemic.

Foreign reserves slip to US$ 7.2bn in April; still sufficient for debt repayments

Sri Lanka’s official reserves slipped by US$ 354 million during April to end with assets of US$ 7.2 billion as the foreign earnings from exports, services and inflows to the capital account slowed significantly, but the authorities expressed confidence in meeting foreign debt obligations due during the remainder of the year.

Sri Lanka Telecom gets Group CEO

State-controlled Sri Lanka Telecom PLC (SLT) has announced the appointment of a Group Chief Executive Officer two years after the former CEO Dileepa Wijesundera left the Group.

Tea sales average hits all-time high in April 2020

The Ceylon Tea cuppa for the month of April recorded an impressive sales average reaching the highest ever gain, a development that is much welcome for the industry that is determined to steer forward amidst new challenges brought about by the global pandemic.

Elpitiya Plantations to move ahead with US$4mn ESCAPE theme park project despite COVID-19 impact

Sri Lanka’s Elpitiya Plantations PLC is planning to move ahead with the development of US$ 4 million ESCAPE theme park in the Galle district later this year with Sim Leisure Group Ltd, Singapore Stock Exchange listed leading theme park developer and operator based in Malaysia, despite the COVID-19 pandemic which has adversely impacted the company’s performance and the country’s tourism industry.

Tourism sector appeals for further assistance from govt.

Sri Lanka’s strongly hit tourism sector has once again reached out to the government seeking further assistance, and the latest appeal is to extend short and long-term relief packages for the affected entities and self-employed persons.

Emirates airline reports rise in annual profit, coronavirus hits final quarter

Emirates, one of the world’s biggest long-haul airlines, reported a 21percent rise in full-year profit yesterday, but warned the outbreak of the new coronavirus hit its performance in the fourth quarter of the financial year.

Losses mount at Hayleys Fabric, but company returns to full capacity with shift in production

Losses at Hayleys Fabric PLC swelled in the three months ended March 2020, as sales plunged while the operations were suspended two weeks prior to the end of the quarter as the world was engulfed in the worst pandemic in a century forcing all its foreign clients too to shutdown their operations.

Oil palm industry – Not understood and utilised to potential

Consequence to COVID-19, Sri Lanka is now compelled to ban imports, restrict imports or increase import taxes to manage its valuable foreign exchange reserves. Though such short-term actions are timely and inevitable to face a crisis situation, they would invariably cause hardships to consumers, industrialists and eventually to the public.

ADB provides guarantee for US $ 25mn trade loan to SPC to purchase medical supplies

The Asian Development Bank (ADB) has provided a guarantee for a US $ 25 million trade loan to State Pharmaceuticals Corporation of Sri Lanka (SPC) to purchase medical supplies, as part of the country’s response to the novel coronavirus (COVID-19) pandemic.

Footwear sales to drive recovery of DSI Samson Group: Fitch

Fitch Ratings forecasts a faster recovery for Sri Lanka’s DSI Samson Group’s (DSG) footwear segment, from the disruption caused by the slowdown in economic activity precipitated by the COVID-19 pandemic, while its tyre segment will have to brace for a long and painful path to recovery.

Stocks advance as virus restrictions are eased

Most equities rose again yesterday as investors grew increasingly, but cautiously, hopeful that the worst of the coronavirus had passed and as countries begin to slowly open up from lockdown.

EFC highlights plight of employers to govt.

The Employers’ Federation of Ceylon (EFC) has reached out to the government seeking short-term relief for the private sector as the stoppage of work for over six weeks has crippled businesses, making it difficult for many to pay even the basic salary component.

Coronavirus exerts pressure on Lankan banks’ ratings

Fitch Ratings yesterday cut the ratings of three Sri Lankan banks to reflect the sovereign rating, which was downgraded a few weeks ago to ‘B-’ with a ‘Negative’ outlook, citing heightened public and external debt sustainability challenges from the new coronavirus emerged out of China.

Union Bank undertakes to infuse fresh capital if UB Finance fails to court outside investor

UB Finance Limited (UBF) has yet again failed to meet the extended timeline given by the Central Bank, which lapsed on March 31, 2020, to meet the various statutory thresholds, including the one to bring in fresh capital to meet the minimum capital level required to operate as a finance company.

Several new asset classes categorised to support liquidity positions of banks

The Central Bank (CB) has categorised several new assets held by the banking sector as liquid assets, in considering the potential adverse impact on the liquidity position of licensed commercial banks and licensed specialised banks from the COVID-19 pandemic-induced economic slowdown.

Central Bank cuts policy rates further to support economy

The Monetary Board of the Central Bank of Sri Lanka, at a special meeting held yesterday, decided to reduce the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points, to 5.50 percent and 6.50 percent, respectively, effective from the close of business on May 6, 2020.

An election in the time of pandemic in Sri Lanka

Despite the fact that electoral democracy in Sri Lanka faced many challenges in pre and post-independence eras, the country has managed to conduct periodical elections in national level.

Work from home: All too convenient but are we doing it right?

The coronavirus (COVID-19) pandemic brought about a new wave of remote work for employers, who otherwise would not have considered venturing outside what was considered the norm, until recently.

What’s next for supply chains scrambled by the pandemic?

The emergency created by COVID-19 has stimulated innovation, creativity and novel ways of structuring tasks, organisations and systems. In the midst of this worldwide crisis, it is hard to assess what temporary measures will become more permanent - or will morph into something else.

No sooner Sri Lanka’s private credit started picking up, coronavirus killed it

Sri Lanka’s credit to the private sector began picking up in February after months of hiatus and then met with new coronavirus, which sent everything packing back to ground zero.

Recovery of most listed firms to take more than one year: report

The full recovery of listed entities of Colombo Stock Exchange (CSE) is expected to drag up to June next year with anticipated long-term recovery of tourism, plantation, construction material and real-estate, consumer durables, apparel and retail sectors due to the prolonged impact of COVID-19 pandemic, Colombo-based First Capital Research said in a special report.

Hambantota Port’s tank farm fully operational

With Hambantota International Port (HIP) resuming operations with Litro Gas, the port completes its full complement of energy services, positioning itself to vie for hub status in the South Asian region.

Retailers request landlords to halve rentals/leases for next six months

Sri Lanka’s organised retailers request landlords to halve rentals/leases for the next six months citing a whopping 85 percent possible drop in revenue across all retail establishments and sectors due to the prevailing situation in the country caused by the

ICC Sri Lanka backs President’s move to re-open economy

The International Chamber of Commerce (ICC) Sri Lanka yesterday said it fully supports President Gotabaya Rajapaksa’s initiative to re-open the Sri Lankan economy safely, prudently but decisively and to move towards restoring economic activity at levels allowable within safe public health limits.

SriLankan launches dedicated cargo flights to rescue export industries

National carrier, SriLankan Airlines, is making a decisive move to rescue the country’s much troubled export industries by launching dedicated cargo services to a host of destinations and throwing a lifeline to the nation’s economy at a time of gravest peril.

Markets cheer ‘light at end of tunnel’ in virus crisis

Equities and crude rallied yesterday as investors cheered a further easing of lockdowns in some countries, which offset fears of a renewed trade war between China and the United States.

Tourism authorities request all tourists to register with website

Sri Lanka Tourism is in the process of gathering details of all the international tourists, businessmen and expatriates engaged in the tourism industry of Sri Lanka, following the outbreak of COVID-19 pandemic in the country.

Central bankers open up the pandemic box

Central banks worldwide have become the white knights to the rescue in the COVID-19 economic crisis. Having pledged ‘whatever it takes’ to expand liquidity and their balance sheets to fight the economic impact, they have been applauded.